Stock Analysis on Net
Stock Analysis on Net

Hubbell Inc. (NYSE:HUBB)

This company has been moved to the archive! The financial data has not been updated since November 1, 2023.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Hubbell Inc., balance sheet: goodwill and intangible assets

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Goodwill 1,970,500 1,871,300 1,923,300 1,811,800 1,784,400
Patents, tradenames and trademarks 187,900 181,300 213,400 202,700 204,400
Customer relationships, developed technology and other 955,300 901,200 958,000 861,000 833,000
Definite-lived intangibles, gross amount 1,143,200 1,082,500 1,171,400 1,063,700 1,037,400
Accumulated amortization (513,500) (441,600) (414,400) (335,800) (271,200)
Definite-lived intangibles, net 629,700 640,900 757,000 727,900 766,200
Tradenames and other 40,200 40,600 53,600 53,600 53,300
Indefinite-lived intangibles 40,200 40,600 53,600 53,600 53,300
Other intangible assets, net 669,900 681,500 810,600 781,500 819,500
Goodwill and other intangible assets 2,640,400 2,552,800 2,733,900 2,593,300 2,603,900

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Hubbell Inc. goodwill decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Other intangible assets, net Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Hubbell Inc. other intangible assets, net decreased from 2020 to 2021 and from 2021 to 2022.
Goodwill and other intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Hubbell Inc. goodwill and other intangible assets decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.

Adjustments to Financial Statements: Removal of Goodwill

Hubbell Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported) 5,402,600 5,281,500 5,085,100 4,903,000 4,872,100
Less: Goodwill 1,970,500 1,871,300 1,923,300 1,811,800 1,784,400
Total assets (adjusted) 3,432,100 3,410,200 3,161,800 3,091,200 3,087,700
Adjustment to Total Hubbell Incorporated Shareholders’ Equity
Total Hubbell Incorporated shareholders’ equity (as reported) 2,360,900 2,229,800 2,070,000 1,947,100 1,780,600
Less: Goodwill 1,970,500 1,871,300 1,923,300 1,811,800 1,784,400
Total Hubbell Incorporated shareholders’ equity (adjusted) 390,400 358,500 146,700 135,300 (3,800)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Hubbell Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Hubbell Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Total Asset Turnover
Reported total asset turnover 0.92 0.79 0.82 0.94 0.92
Adjusted total asset turnover 1.44 1.23 1.32 1.49 1.45
Financial Leverage
Reported financial leverage 2.29 2.37 2.46 2.52 2.74
Adjusted financial leverage 8.79 9.51 21.55 22.85 —
Return on Equity (ROE)
Reported ROE 23.12% 17.92% 16.97% 20.59% 20.23%
Adjusted ROE 139.83% 111.44% 239.40% 296.30% —
Return on Assets (ROA)
Reported ROA 10.10% 7.56% 6.91% 8.18% 7.39%
Adjusted ROA 15.91% 11.71% 11.11% 12.97% 11.67%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Hubbell Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Hubbell Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Hubbell Inc. adjusted ROE deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Hubbell Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Hubbell Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net sales 4,947,900 4,194,100 4,186,000 4,591,000 4,481,700
Total assets 5,402,600 5,281,500 5,085,100 4,903,000 4,872,100
Activity Ratio
Total asset turnover1 0.92 0.79 0.82 0.94 0.92
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net sales 4,947,900 4,194,100 4,186,000 4,591,000 4,481,700
Adjusted total assets 3,432,100 3,410,200 3,161,800 3,091,200 3,087,700
Activity Ratio
Adjusted total asset turnover2 1.44 1.23 1.32 1.49 1.45

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 4,947,900 ÷ 5,402,600 = 0.92

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 4,947,900 ÷ 3,432,100 = 1.44

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Hubbell Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets 5,402,600 5,281,500 5,085,100 4,903,000 4,872,100
Total Hubbell Incorporated shareholders’ equity 2,360,900 2,229,800 2,070,000 1,947,100 1,780,600
Solvency Ratio
Financial leverage1 2.29 2.37 2.46 2.52 2.74
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets 3,432,100 3,410,200 3,161,800 3,091,200 3,087,700
Adjusted total Hubbell Incorporated shareholders’ equity 390,400 358,500 146,700 135,300 (3,800)
Solvency Ratio
Adjusted financial leverage2 8.79 9.51 21.55 22.85 —

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Financial leverage = Total assets ÷ Total Hubbell Incorporated shareholders’ equity
= 5,402,600 ÷ 2,360,900 = 2.29

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Hubbell Incorporated shareholders’ equity
= 3,432,100 ÷ 390,400 = 8.79

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Hubbell Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Hubbell Incorporated 545,900 399,500 351,200 400,900 360,200
Total Hubbell Incorporated shareholders’ equity 2,360,900 2,229,800 2,070,000 1,947,100 1,780,600
Profitability Ratio
ROE1 23.12% 17.92% 16.97% 20.59% 20.23%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income attributable to Hubbell Incorporated 545,900 399,500 351,200 400,900 360,200
Adjusted total Hubbell Incorporated shareholders’ equity 390,400 358,500 146,700 135,300 (3,800)
Profitability Ratio
Adjusted ROE2 139.83% 111.44% 239.40% 296.30% —

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 ROE = 100 × Net income attributable to Hubbell Incorporated ÷ Total Hubbell Incorporated shareholders’ equity
= 100 × 545,900 ÷ 2,360,900 = 23.12%

2 Adjusted ROE = 100 × Net income attributable to Hubbell Incorporated ÷ Adjusted total Hubbell Incorporated shareholders’ equity
= 100 × 545,900 ÷ 390,400 = 139.83%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Hubbell Inc. adjusted ROE deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Hubbell Incorporated 545,900 399,500 351,200 400,900 360,200
Total assets 5,402,600 5,281,500 5,085,100 4,903,000 4,872,100
Profitability Ratio
ROA1 10.10% 7.56% 6.91% 8.18% 7.39%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income attributable to Hubbell Incorporated 545,900 399,500 351,200 400,900 360,200
Adjusted total assets 3,432,100 3,410,200 3,161,800 3,091,200 3,087,700
Profitability Ratio
Adjusted ROA2 15.91% 11.71% 11.11% 12.97% 11.67%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 ROA = 100 × Net income attributable to Hubbell Incorporated ÷ Total assets
= 100 × 545,900 ÷ 5,402,600 = 10.10%

2 Adjusted ROA = 100 × Net income attributable to Hubbell Incorporated ÷ Adjusted total assets
= 100 × 545,900 ÷ 3,432,100 = 15.91%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Hubbell Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.